Optimo Loan Secures $10M Seed Funding to Expand MSME Lending in Rural India

• ByStartupStory     |    March 20, 2024

Optimo Loan, an MSME lending tech startup for rural India, has announced the successful closure of a $10 million seed funding round. The financing was spearheaded by prominent venture capital firms Blume and Omnivore, with additional backing from Optimo’s founder, Prashant Pitti.

Optimo Loan aims to utilize the freshly secured funds to bolster its operational footprint, targeting expansion into 20 new locations across rural India by the end of the fiscal year. Moreover, the startup intends to channel resources into further enhancing its technological infrastructure and talent acquisition efforts.

Founded by Prashant Pitti, a co-founder of EaseMyTrip, Optimo Loan represents a fusion of cutting-edge technology and a hybrid distribution model, catering specifically to the unique financing needs of MSMEs in rural India. Since commencing its lending operations in November 2023, the company has displayed rapid yet judicious scaling.

Pitti emphasized the company’s commitment to prudent growth, stating, “Optimo lending operations commenced in November 2023, and we are scaling swiftly yet prudently. Our top management team comprises individuals with extensive experience of 10-15 years in MSME lending. We aim to establish an asset-light company by primarily leveraging co-lending agreements with banks and larger NBFCs.”

Recognizing the transformative potential of Optimo’s innovative lending technology model, Reihem Roy, Partner at Omnivore, remarked, “Optimo’s innovative lending technology model holds the potential to make a substantial impact and foster enduring change in underserved communities.” Roy further underscored the vast opportunity that remains untapped in India’s MSME sector, where only a fraction of businesses have accessed formal loans to date.

Follow Startup Story